Go-to-market software pioneers HubSpot this afternoon reported Q3 revenue and profit that both topped Wall Street's expectations, and an outlook that was higher as well.
Despite the positive report, Hubspot shares declined 5% in late trading.
CEO Yamini Rangan noted in prepared remarks that "At this year's annual Analyst Day, I provided an overview of our long-term growth strategy and introduced the four strategic pillars that are guiding our investments into the future."
Added Rangan, "We've been well-positioned to meet the evolving needs of our customers this year, as evidenced by another quarter of impressive results.
"Our long-term strategy, coupled with the enterprise-grade product announcements we made at INBOUND, give us a solid foundation to continue that momentum and finish out the year strong."
Revenue in the three months ended in September rose 49%, year over year, to $339.2 million, yielding a net profit of 50 cents a share.
Analysts had been modeling $326.5 million and 44 cents per share.
The company's operating profit margin, excluding some costs, expanded to 9.7% from 7.2% a year earlier. On a GAAP basis, the operating loss margin narrowed to 4.4% from 6.8%.
Hubspot said its total number of customers rose 34%, year over year, to 128,144. The average subscription revenue per customer rose 9%, year over year, to $10,536, the company said.
For the current quarter, the company sees revenue of $356 million to $358 million, and EPS in a range of 52 cents to 54 cents. That compares to consensus for $352 million and a 52-cent profit per share.